Correlation Between Schoeller Bleckmann and BKS Bank
Can any of the company-specific risk be diversified away by investing in both Schoeller Bleckmann and BKS Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Schoeller Bleckmann and BKS Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schoeller Bleckmann Oilfield Equipment and BKS Bank AG, you can compare the effects of market volatilities on Schoeller Bleckmann and BKS Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Schoeller Bleckmann with a short position of BKS Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schoeller Bleckmann and BKS Bank.
Diversification Opportunities for Schoeller Bleckmann and BKS Bank
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Schoeller and BKS is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Schoeller Bleckmann Oilfield E and BKS Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKS Bank AG and Schoeller Bleckmann is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Schoeller Bleckmann Oilfield Equipment are associated (or correlated) with BKS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKS Bank AG has no effect on the direction of Schoeller Bleckmann i.e., Schoeller Bleckmann and BKS Bank go up and down completely randomly.
Pair Corralation between Schoeller Bleckmann and BKS Bank
Assuming the 90 days trading horizon Schoeller Bleckmann Oilfield Equipment is expected to generate 4.74 times more return on investment than BKS Bank. However, Schoeller Bleckmann is 4.74 times more volatile than BKS Bank AG. It trades about 0.06 of its potential returns per unit of risk. BKS Bank AG is currently generating about -0.12 per unit of risk. If you would invest 2,780 in Schoeller Bleckmann Oilfield Equipment on August 30, 2024 and sell it today you would earn a total of 75.00 from holding Schoeller Bleckmann Oilfield Equipment or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schoeller Bleckmann Oilfield E vs. BKS Bank AG
Performance |
| Timeline |
| Schoeller Bleckmann |
| BKS Bank AG |
Schoeller Bleckmann and BKS Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schoeller Bleckmann and BKS Bank
The main advantage of trading using opposite Schoeller Bleckmann and BKS Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schoeller Bleckmann position performs unexpectedly, BKS Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BKS Bank will offset losses from the drop in BKS Bank's long position.| Schoeller Bleckmann vs. Voestalpine AG | Schoeller Bleckmann vs. Andritz AG | Schoeller Bleckmann vs. Wienerberger AG | Schoeller Bleckmann vs. OMV Aktiengesellschaft |
| BKS Bank vs. RATH Aktiengesellschaft | BKS Bank vs. AT S Austria | BKS Bank vs. BAWAG Group AG | BKS Bank vs. Semperit Aktiengesellschaft Holding |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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